China Retaliates, Risk Sentiment Collapses as Market Turmoil Deepens
| Action Insight Mid-Day Report 4-4-25 |
China Retaliates, Risk Sentiment Collapses as Market Turmoil Deepens |
Risk aversion deepened across global markets today as China unveiled a forceful response to the sweeping US tariffs announced earlier this week. Beijing will impose an additional 34% tariff on all US goods starting April 10, in a move that effectively escalates the trade war into a full-scale economic confrontation. China sent the signal that it's prepared to endure economic pain to counter US pressure. The Commerce Ministry justified the decision on grounds of national security and international obligations, but the timing and scope leave no doubt it’s a retaliatory measure. US stock futures plunged in response, with DOW pointing to another 1000-point drop at the open. Wall Street’s mood was already fragile after a volatile week driven by tariff headlines, and the market’s inability to find relief even after a much stronger-than-expected non-farm payrolls report highlights the depth of the panic. Traders are rushing into US Treasuries, pushing the 10-year yield below the key 3.9% level, a sign of rising demand for safe havens amid intensifying uncertainty. In the currency markets, Aussie has taken the hardest hit, tumbling sharply after China’s retaliation was announced. Kiwi followed as the second-worst performer. Loonie also weakened notably after domestic employment data showed a surprise job loss in March, though it remains a distant third among the day’s laggards. On the flip side, Swiss Franc extended its stellar run to lead the pack again today. Yen is also well supported, though not quite matching the Franc’s gains. Euro remains relatively firm, continuing to draw strength as a liquid alternative to Dollar amid global uncertainty. Meanwhile, Sterling and Dollar are holding in the middle of the pack..... |
AUD/USD Mid-Day Report Daily Pivots: (S1) 0.6240; (P) 0.6315; (R1) 0.6403; More... AUD/USD's steep decline today and breach of 0.6087 support indicates resumption of whole fall from 0.6941. Intraday bias is back on the downside. Next target is 61.8% projection of 0.6941 to 0.6087 from 0.6388 at 0.5860. On the upside, above 0.6154 minor resistance will turn intraday bias neutral and bring consolidations first. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:30 | JPY | Overall Household Spending Y/Y Feb | -0.50% | -0.70% | 0.80% | | 06:00 | EUR | Germany Factory Orders M/M Feb | 0.00% | 3.30% | -7.00% | -5.50% | | 06:45 | EUR | France Industrial Output M/M Feb | 0.70% | 0.50% | -0.60% | -0.50% | | 08:30 | GBP | Construction PMI Mar | 46.4 | 46.7 | 44.6 | | 12:30 | USD | Nonfarm Payrolls Mar | 228K | 128K | 151K | 117K | | 12:30 | USD | Unemployment Rate Mar | 4.20% | 4.10% | 4.10% | | 12:30 | USD | Average Hourly Earnings M/M Mar | 0.30% | 0.30% | 0.30% | | 12:30 | CAD | Net Change in Employment Mar | -32.6K | 10.4K | 1.1K | | 12:30 | CAD | Unemployment Rate Mar | 6.70% | 6.70% | 6.60% |
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